Carbon- Cap and Trade, Carbon Offsets & Carbon Tax

CAP and TRADE

What is ‘Cap And Trade’Cap and trade, or emissions trading, is a common term for a government regulatory program designed to limit, or cap, the total level of specific chemical by-products resulting from private business activity. Cap and trade’s purpose is to create a market price for emissions or pollutants that did not previously exist and address possible negative externalities…More to learn>>investopedia.com

John Stivers-Owner & Operator of J.H. Stivers Project Services LLC

Cap and Trade is a strategy that involves not just government in setting greenhouse gas emissions and getting them down to where we think they ought to be, but also involves the players who produce them. And the way it works is, it sets the cap, which government has to do, and then allows those of us that are industry to demonstrate that we’ve done better, and rewards us…Read the transcript or watch the video>>energy-101.org

BREAKING DOWN ‘Cap And Trade‘Cap and trade is often held out as a more palatable alternative to the carbon tax proposal. In either case, the goal is to offset any negative environmental damages that are not represented as costs in the production process…More to learn>>investopedia.com

– What Are the Key Similarities Between a Carbon Tax and Cap-and-Trade?
– What Are Some Important Advantages of Each?
– What Are the Key Disadvantages?
– So What’s the Bottom Line?www.wri.org

Cap and Trade vs. TaxesCap and trade and a carbon tax are two distinct policies aimed at reducing greenhouse gas (GHG) emissions. Each approach has its vocal supporters. Those in favor of cap and trade argue that it is the only approach that can guarantee that an environmental objective will be achieved, has been shown to effectively work to protect the environment at lower than expected costs, and is politically more attractive. Those supporting a carbon tax argue that it is a better approach because it is transparent, minimizes the involvement of government, and avoids the creation of new markets subject to manipulation. This note explores both the fundamental similarities between cap and trade and tax regimes, but also the important differences between them.

CLIMATE OFFSETS

Tony Anderson-General Manager, Cherryland Electric Cooperative

A carbon allowance is an instrument that will be issued by the government or a trading exchange that will give the utilities the right to emit a certain level of carbon. …Read more or watch the video>>